The government has disbursed 2.2 million plots of land to citizens but many do not have the money to build houses.

Mike Williams, senior manager of CBRE research and consultancy, said 10 million Saudis and their families still live in rented accommodation, quoting a study recently conducted by the firm.

The land grant scheme saw all male Saudis over the age of 18 and widows get land from the government.

The government has tried to resolve this situation recently by providing loans through the Real Estate Development Fund with the help of local banks.

“All males over 18 and widows are eligible to have a residential piece of land regardless of their income or economic situation, according to a government scheme. As a result, a large number of (plots) were left undeveloped because the beneficiaries did not have enough money to build houses. The Ministry for Municipal and Rural Affairs distributed 2.2 million pieces of land, but there is no available data to monitor the actual usage of these lands.”

Mohammad Al-Mohammad, executive president for Bawani International, said the government should either finance citizens to build houses on their land grants or do this itself.

The study also found that the high cost of land was making it difficult for companies to cater to people with low and medium incomes.